David Wise is currently the Director of a large NBER program on the economics of aging. The objective of this application is to develop a companion effort in the health economics of aging. The proposed geriatric leadership academic award will enable the NBER to establish a comprehensive research agenda in the health economics of aging, to initiate and undertake an extensive series of new studies on health care and health policy issues, to coordinate these otherwise independent studies into a unified program, and to integrate health economics research into all aspects of the ongoing aging program. The underlying motivation for this effort is to inform future health policy decisions. While the specific research agenda will evolve as the project progresses, there are seven overlapping themes that characterize the NBER's current research plan: (1) the causes of escalating health care expenditures for both public and private payers, (2) the effects of government health care policies on treatment decisions and costs, (3) the variation in employer-provided health insurance plans, and their effect on treatment decisions and costs, (4) the quality of care and, specifically, the effect of alternative treatments on health outcomes, (5) access to health care services, (6) the cost and effectiveness of health care services in the last year of life, and (7) the effects of health status on other aspects of older peoples's behavior, such as retirement, living arrangements, and intra-family relations. Some of the activities and research initiatives described in this application would take place without the proposed award. However, the award will provide the leadership and organizational resources for a substantially larger and more cohesive effort.